Recently took a modeling test for an associate position with boutique firm. Nothing difficult - 3 statements, DCF, Comps Analysis, LBO. I was having an off day and don't feel confident about what I submitted. How important are these tests when interviewing for post-MBA associate roles? Could this be a make-or-break situation? Did I eliminate myself from contention?
Background: MBA in May'19. Currently working in valuations - mix of PPAs and Equity Valuations. I've done the networking, and it seems that one of the MDs likes me enough to go to bat on behalf. I feel good about my skillset and ability to perform, but now I'm overthinking if I fucked myself out of a good loateral move.
Thoughts?
I think they do it for the following reasons:
In a small bank the associate is probably doing modelling
They want to get a understanding of your baseline knowledge, to make sure you have a foundation to build upon
To rank you against your peer and make sure what you said on your resume is accurate.
BTW, I am not in IB so I am not sure
I am sure it varies heavily from bank to bank, but I’ll give you my experience as another data point.
When interviewing for my current role (analyst at a boutique), I took a similar modeling test, after which I thought I had no shot at the offer. To my surprise, I received positive feedback and the offer. I think that, in my case, the team was very much looking to see how I thought about my assumptions and how I used the resources provided, not necessarily how solid the structure of the model was. So, my thoughtfulness made up for any technical deficiencies due to being pressed for time or whatever.
Then again, I also know there are other teams that put a lot of weight on fundamental technical knowledge. I think it’s up to you to gauge what sort of team you’re dealing with based on previous interactions. Either way, not much you can do now but wait and follow up.
For my most recent position I was given historicals and asked to create a complete LBO model (I included ratio analysis, IRR, assumptions, etc.) at home, as well as a writing sample, after taking an online "personality/aptitude" test. It was only thereafter that I was invited to interview by phone. I definitely took my time preparing it at home, making it as thorough and easy to read/beautiful as possible.
Curious at what stage they gave you the test (post phone interview?), and where did you do the test? On site, or at home?
Process has been initial phone screening with HR, personality assessment, then the modeling test, feedback with a Principal on Thursday.
Test was completed over a few hours at home this past Sunday.
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